So what: Revenue rose 16% to $101.1 million, but the bottom line is what really impressed this quarter. Earnings per share exploded to $74.5 million, or $6.13 per share, from $0.96 a year ago.

Now what: Before we get too excited, there was a derivatives gain of $92.3 million in the quarter versus a loss of $4 million a year ago. That gain alone accounts for the outstanding earnings growth and then some. Production did increase more than expected, but I think this move is a bit overdone even after a great-looking quarter on the surface.

Interested in more info on Clayton Williams Energy? Add it to yourwatchlist.